Small businesses need accounting software that is easy to use, cost-effective and gets the job done quickly. The latest cloud accounting systems tick all the right boxes – and they offer much more.
Cloud accounting software provides a number of solutions that are ideal for small businesses. They are secure, easy to access, backup automatically, increase efficiency and save you money. They all link into bank accounts and HMRC and can be accessed by a mobile device.
But which cloud accounting software should you choose? In this article, we take a look at the top four cloud accounting systems and describe the benefits of each. All you have to do is decide which system best suits the needs of your business.
Benefits of Xero
Xero is one of the leading lights for small business accounting. It is an ideal system for start-ups with plans for fast growth because it gives you the advantage of sharing account information with your accountant and collaborating with them in real-time.
The software also boasts customisable templates so you can add a logo to your invoices and appear professional from the outset. Importing bank statements to Xero is automatic, so too is sharing tax information with HMRC.
One of Xero’s distinguishing features is the ability to create an invoice and provide customers with multiple online payment options. This gives them the opportunity to pay immediately. You also receive a notification when the invoice is opened.
Xero gives you much more control over your accounting than traditional methods. Small business owners also have the option to grant permissions to multiple users so you can improve the efficiency of your staff by allowing them to upload receipts, raise purchase orders, issue a quote and approve personal expenses.
There are three Xero packages to choose from; starter, standard and premium, all of which give you a little bit extra, although you can also purchase optional extras for a minimal amount which bumps up the monthly cost. The Premium package in the UK is £27.50 a month +VAT.
Benefits of Quickbooks
Quickbooks is arguably the best cloud accounting option for retail businesses that manage and sell inventories together with self-employed business owners that do a lot of travelling and want to claim mileage.
Because Quickbooks syncs with your mobile phone, you can manage your accounts anytime, anywhere. And it also allows you to accurately calculate your mileage through your mobile phone as well.
The dashboard gives you an overview of all the critical information you need at-a-glance, and using your actual business data calculates the amount of tax you’re likely to owe so you can account for outgoings in advance.
Some other advantages Quickbooks offers is automatic scheduled invoicing, estimate project costs, purchase order management and integrated tax management.
You can also use Quickbooks for calculating payroll services. The only drawback is, this feature is only available on the premium package so is more expensive.
Having said that, Quickbooks is still the least expensive cloud accounting system on the market. Basic packages are designed for freelancer and independent contractors and cost £6 a month +VAT, with the first 6-months for £3.
Small businesses and VAT registered companies have the option of the Essentials package for £15 +VAT or the Plus package at £25/mo +VAT, with the first 6-months for £15.
Benefits of Sage 50Cloud
Having been launched in the early 19080’s, Sage is the stalwart of small business accounting systems. In a nutshell, Sage sets the industry standard. Now its moved its software into the cloud, the company offers an even more simplified system that can facilitate just about any range of accounting task any business is likely to encounter.
The Sage 50Cloud accounting software handles expense management, projects accounting, compliance management, invoices, estimates, quotes, statements and over 15 reporting features. It also doubles as a tax management tool and integrates with Office 365.
The Professional suite is fully-kitted out and can handle complex accounting procedures. With features like tracking and managing stock, trading in multiple currencies and managing budgets across multiple departments, Sage 50Cloud is an ideal tool for large businesses.
However, it is also the most expensive cloud accounting software, although the basic package for freelancers and some small businesses starts at just £10. The Standard package is £30 and the Professional package in £62.50.
There is also a free version although this limits you to just five invoices a month. Furthermore, if you’re undecided about whether you want to buy Sage Cloud50, take advantage of the trial period and get full access for free.
Benefits of KashFlow
KashFlow provides multiple cloud accounting options and enables small businesses owners to make sense of your book-keeping.
The biggest advantage is you can integrate the software with third-party applications including CRM, e-Commerce platform, email programs, payment processors, payroll software and inventory management system.
Subsequently, KashFlow makes it easy to access data from every aspect of your business that impacts finances. Key features include invoicing, estimation, credit control, tax accounting, purchase management, payroll and reporting.
Invoices are simple to create users receive email alerts when payments are overdue. Alternatively, you can set the system up to send automatic reminders to your customers when a payment is late.
Small businesses that waste of lot of time preparing quotes and estimates can improve efficiency. Templates are already prepared and the intuitive software is easy to use. Not only that, but the information automatically converts to an invoice when customers accept the proposal.
In terms of pricing, The Starter plan at £8/mo allows you to send 10 invoices and is ideal for sole traders, contractors and small businesses. Growing businesses and Limited Companies are better off with the Business plan at £15 or £21 if you want to Payroll included, although you can purchase dedicated payroll software from £19.
In Summary?
Small businesses that streamline accounting with cloud-based software are better placed to manage cashflow and keep the finances of your company in order. Why use traditional methods that are time-consuming when you can make life so much easier. Should you wish to better understand your options or would like to benefit from professional accounting advice contact the Acute Accountants team we’re highly experienced with all of the above which enables us to provide impartial advice along with a range of training options.